If higher energy consumption by bitcoin miners merely corresponds to higher need for energy, then Bitcoin will not have actually triggered a paradigm shift in our relationship with energy at all. As we will see, the energetic benefits of bitcoin mining have actually increased along with Bitcoins energy consumption.Total number of Bitcoin users over time (source)Total hash rate of the Bitcoin network (source)As you can see in the very first chart, the number of bitcoin users increased at a fast rate up until mid-2021, when the rate of growth slowed. Bitcoin adoption has actually slowed, the networks energy intake and mining activity continues to grow significantly.As discussed previously, bitcoin minings increase in energy usage alone does not tell us that Nakamotos second transformation is underway. As bitcoin minings renewable energy intake increases, so does the global market for tidy energy.Future Indicators Of Nakamotos RevolutionsIn addition to measuring the number of bitcoin holders (or wallets) in existence, another metric by which to determine the success of Nakamotos financial revolution is the number of deals per system of time that involve bitcoin. The number of deals performed on the Lightning Network per system of time will be a straightforward sign of bitcoins development as a financial instrument.As more and more energy projects take benefit of bitcoin mining, Nakamotos energy revolution will be measured by tracking all of the following: Tonnes of carbon dioxide equivalent reduced per unit of energy consumed by bitcoin miners per unit of time.Wattage output by stranded energy sources that would have been unviable in the lack of bitcoin mining.Wattage output by intermittent (and renewable) energy sources that would have been unviable in the lack of bitcoin mining.
This is an opinion editorial by Kent Halliburton, President and COO of Sazmining.Though the intent of the Bitcoin white paper was to introduce a monetary revolution by introducing the first reliable peer-to-peer electronic cash system, were now seeing the beginning of Bitcoins 2nd revolution: Energy.Bitcoin miners serve as energy purchasers of last resort, can work from anywhere and can switch on and off with nearly limitless flexibility. As such, bitcoin mining can render practical eco-friendly and remote energy sources that would have otherwise been unprofitable. In addition, miners can transform waste energy into digital gold, considerably curbing mankinds emissions problem. Remarkably, these improvements to our relationship with energy are already underway, even prior to bitcoin has developed into the next worldwide reserve property. Could it be that Satoshi Nakamotos unstated energy transformation actually takes hold before the very first revolution of a peer-to-peer cash system? We cant understand with certainty, the data recommends that could be the case.The Energy Revolution Gains SteamThough imperfect, the finest metric for comparing Bitcoins monetary and energy transformations is growth. Lets look at development rates in between the total number of bitcoin holders and the total hash rate of all bitcoin miners. Hash rate, the overall computational power utilized by miners to process bitcoin deals and earn new bitcoin, acts as a good proxy for miners energy intake. Nevertheless, this still does not provide us direct data about bitcoin minings increasingly positive results on the energy sector. If greater energy intake by bitcoin miners merely corresponds to greater demand for energy, then Bitcoin will not have triggered a paradigm shift in our relationship with energy at all. But, as we will see, the energetic benefits of bitcoin mining have increased along with Bitcoins energy consumption.Total number of Bitcoin users with time (source)Total hash rate of the Bitcoin network (source)As you can see in the very first chart, the number of bitcoin users increased at a fast rate up until mid-2021, when the rate of development slowed. The drop in adoption approximately corresponds with bitcoins rate drop from over $61,000 to under $32,000. While the hash rate also crashed around this time, it gradually climbed back and continues to reach brand-new heights. Bitcoin adoption has actually slowed, the networks energy intake and mining activity continues to grow significantly.As mentioned previously, bitcoin minings boost in energy usage alone does not tell us that Nakamotos 2nd transformation is underway. To argue that, we need to understand just how much of that energy comes from renewable, waste and stranded energy. The Bitcoin Mining Councils Q3 2022 report discusses that bitcoin minings sustainable electrical energy mix is nearly 60% as of October 2022, up by about 3% from a year ago. Bitcoin miners purchase renewable resource as buyers of last hope; they are not consuming energy that would have been purchased by other consumers. Rather, they acquire the energy exactly when there is little need from others, increasing the success– and therefore the viability– of renewable resource sources across the world. As bitcoin minings renewable resource intake boosts, so does the international market for clean energy.Future Indicators Of Nakamotos RevolutionsIn addition to measuring the variety of bitcoin holders (or wallets) out there, another metric by which to gauge the success of Nakamotos monetary revolution is the variety of transactions per system of time that involve bitcoin. The Lightning Network, a Layer 2 innovation designed to make bitcoin deals low-cost, fast and user-friendly, is growing in prominence as bitcoin develops from a shop of value into a medium of exchange. The variety of transactions executed on the Lightning Network per unit of time will be an uncomplicated indicator of bitcoins growth as a financial instrument.As increasingly more energy tasks benefit from bitcoin mining, Nakamotos energy transformation will be measured by tracking all of the following: Tonnes of co2 comparable reduced per system of energy consumed by bitcoin miners per unit of time.Wattage output by stranded energy sources that would have been unviable in the lack of bitcoin mining.Wattage output by intermittent (and sustainable) energy sources that would have been unviable in the lack of bitcoin mining. As we get more information about both the Lightning Network and the intersection in between bitcoin mining and the energy sector, we will be able to compare just how much each of Nakamotos transformations is progressing gradually. As mentioned earlier, although there will never be a single moment at which either transformation will have formally come to pass, we will at least be able to measure the speed at which each is progressing.What We Now Know About The Dual RevolutionsCurrent data indicates that the growth of bitcoin owners has actually slowed relative to the development of mining. If these patterns continue and if bitcoin miners renewable resource mix continues to be amongst the greenest on earth, then Nakamotos 2nd transformation could certainly overtake his very first. Bitcoin could acquire a reputation as a significant possession in the battle against worldwide warming, rivaling its emerging reputation as the next international reserve asset.Nakamotos unintended energy revolution will continue to grow in force. Thankfully for mankind, it does not matter which of Nakamotos transformations is happening quicker. All of us win with significantly improved cash and energy. This is a guest post by Kent Halliburton. Opinions revealed are totally their own and do not always reflect those of BTC Inc or Bitcoin Magazine.